| Liquor major Shaw Wallace & Co today informed the Calcutta High Court that it had reached an understanding with its creditors to settle Rs 57 crore outstanding dues. |
| With this, the decks have been cleared for UB group chief Vijay Mallya's purchase of shares in Shaw Wallace. Two days ago, Mallya had received a favourable order from the Supreme Court regarding the acquisition of Herbertsons Ltd. |
| Shaw Wallace made this offer in the court of Justice KJ Sengupta, who had earlier stayed any transfer of shares of Shaw Wallace on a petition by their creditors. Justice Sengupta has asked the company to file the terms of settlement on March 22. |
| Once the court receives the settlement terms, it will accept the case as settled and vacate its stay order on the transfer of Shaw Wallace brand names and trademarks and the transfer of assets. |
| Three creditors of Shaw Wallace, Vishisth Chay Vyapar Ltd, MKJ Enterprises Ltd and MKJ Developers Ltd, had moved court on March 3 seeking a stay on the sale of shares and assets and transfer of trademarks, citing a change of ownership after an open offer from the UB group to purchase a 25 per cent stake in the company. |
| These three companies, along with three others -- Hota Huti Wood Product Ltd, Kamini Finance and Investment Ltd and Apex Enterprises Ltd -- had given short-term loans to Shaw Wallace nearly a decade ago and had obtained a decree from the high court for the repayment of dues to the tune of Rs 80 crore, including accrued interest. The six companies are owned by R R Modi. |
| Counsel for Shaw Wallace and the companies owned by Modi stated in court that the matter would be settled out of court as Shaw Wallace was ready to pay Rs 57 crore towards Modi's dues. Modi has accepted Shaw Wallace's offer. |
| The creditors had alleged in their petition that Shaw Wallace was disposing off its shares, assets and trademarks in an attempt to avoid the payment. |
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